REPTTBLIC OF NAMIBIA

NATIONAL ASSEMBLY

USURYAMENDMENT BILL

(As read a First Time)

(Introduced by the Minister of Finance)

1B.10 -20171

EXPLANATORY NOTE:

Words underlined with a solid line indicate insertions in

existing provisions.

Words in bold type in square brackets indicate omissions

from existing provisions.

To

BILL

amend the usury Act, 1968 so as to provide for the limitation of finance

charges in respect of microlending transactions; and to provide for

incidental matters.

BE IT ENACTED as passed by the Parliament, and assented to by the President,

of the Republic of Namibia as follows:

Amendment of section 1 of Act No. 73 of 1968, as amended by Act No. 76 of 1970,

Act No. 62 of 197 A,Act No. 42 of t986,Act No. 62 of 1987 ,Act No. 90 of 1980' Act

No. 100 of 1988 and Act No. 3 of2001

1. Section 1 of the Usury Act, 1968 (in this Act referred to as the "principal

Act") is amended -

(a) by the substitution for the definition of "finance charges" of the following

definition:

'o ttfinance chargestt -

(g) [means] in relation to a money lending transactio{r or a credit

iranra"tion ori learing trattsa"tiotr, m"aos the total of any valuable

*nsiae*tiotr, which u bonower or credit receiver or lessee has given

or is owing, whether as part ofthe principal debt or otherwise, directly

or indirectly, to a moneylender or credit grantor or lessor or to or on

behalf of any intermediary between himself and a moneylender or

credit grantor or lessor [in terms of a money tending transaction

or a credit transaction or a leasing transactionl and includes, in

the case of an agreement in terms of which goods are sold under a

conditionofrepurchaseofsuchgoodsatahigherprice,thedifferencebetween the higher price at which the goods are repurchased and the

lower price at which the goods are sold, but does not include -

(a) a ledger fee;(b) any amount referred to in section 5(1Xb);

(c) the costs referred to in section 5(1Xe) or (0;

(othecostsofrepai iandmaintenanceofthemovablepropertyleased in terms of a leasing transaction;

( e ) a n y v a l u a b l e c o n s i d e r a t i o n s p e c i f i c a l l y i n c l u d e d i n t h eprincipal debt bY this Act;

(f) any underwriting fee;(g) any amount or costs referred to in section 5A(1)(a) or (c); and

in relation to a microlending tr@

Eefine.d in section 1 of the Microlending AcU"; and

(b) by the insertion after the definition of "managero' of the following

definitions:

o. ..microlender" means a microlender as defined in section 1 of the

Microlending Act;

"Microlending Act" means the Microlending Act, 2017 (Act No'

2017);

o.microlending transaction" means a microlending transaction as defined

in section 1 of the Microlending Act;"'

Amendment of section 2 of Act No. 73 of 1968, as amended by Act No. 76 of 1970,

Act No. 62 of l974,Act No. 42 of l986rAct No. 62 of l987,,Act No. 90 of 1980' Act

No. 100 of1988 andAct No.91 of1989

2. Section 2 of the principal Act is amended by the insertion after section

28 of the following section:

No microlender shall in corurection with any microlending transaction

stipulate for, demand or receive finance charges at a rate greater than

percentage determined, by the Registrar by notice inthe Gazette, in accordi

with the directions of the Minister".

Short title and commencement

3. This Act is called the usury Amendment Act,20l7 and comes into

operation on a date determined by the Minister by notice inthe Gazette.

*2C Maximum finance clqlgql45lylghconnection with a microlending transaction